GBPUSD: SELL 1.3270, SL 1.3290, TP 1.3190 | 02 May 2025

An event to pay attention to today:

15:30 EET. USD - Number of Initial Jobless Claims in the USA

17:00 EET. USD - US ISM Manufacturing Index

GBPUSD:

The GBP/USD pair continues its downward trajectory for the third consecutive day, trading near 1.3310 during Thursday's Asian session. Market participants seem to be taking cautious positions ahead of the US Institute for Supply Management (ISM) Manufacturing Purchasing Managers' Index (PMI), which will be released later in the North American session.

The US dollar (USD) is gaining strength, boosted by US President Donald Trump's comments during an interview with NewsNation Town Hall early Thursday. Trump expressed optimism about a possible trade deal with China, saying there is a ‘very strong possibility that we will reach an agreement’.

The US Dollar Index (DXY), which tracks the dollar's performance against a basket of six major currencies, also rose for the third straight day, trading near 99.70 at the time of writing.

US gross domestic product (GDP) contracted 0.3 per cent year-on-year in the first quarter of 2025, missing forecasts for a 0.4 per cent increase and down sharply from the 2.4 per cent growth in the previous quarter. Meanwhile, the core personal consumption expenditure (PCE) price index - a key measure of inflation - rose 2.6% year-on-year in March, matching expectations but slower than February's 2.8% rise.

Overseas, the Pound Sterling (GBP) remains under pressure as market sentiment becomes increasingly meek towards the Bank of England (BoE). Traders are now assessing the possibility of a 25 basis point rate cut at the upcoming Bank of England meeting on 8 May.

Trading recommendation: SELL 1.3270, SL 1.3290, TP 1.3190

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